Detroit Works Project - Why Change


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  • Tax calculation takes into account both property and income tax. The median housing value for the block group which contains the study area is $25,172 and the median household income is $19,326.The tax rates used are 65.14 mills for property taxes and 2.5% for resident income tax.
  • If half of the total number of unoccupied residential parcels were reoccupied, the standard homestead property tax rate could be reduced by 21% to produce the same revenue currently generated by existing occupied parcels. There are approximately 387,000 total parcels in the City. 343,849 residential parcels. There are 91,488 vacant residential parcels and approximately 33,529 vacant houses. Tax calculations are for property tax ONLY. The calculations assume a median housing value of $85,200 and a tax rate of 65.14 mills. This is the housing value reported from the 2005-2009 5 year American Community Survey. The current revenue derived from taxes in this equation is $609,135,123. If there were an occupied on one half of the vacant lots revenue would be $782,593,960. This represents a difference of $173,458,837. Reducing the tax rate to 51 mills would create $612,715,566 in revenue. Slightly more than is currently being generated.
  • Source: 2008 Claritas, 2009 ACS, 2010 SEMCOG
  • Vacant land area is overwhelmingDetroit’s percentage of vacant land is twice the amount of the average American city. The Brookings Institute estimated that 15% of the total land area of the average American major city is vacant. Detroit’s generally accepted percentage of vacancy is twice that amount. At 29% vacancy, Detroit is estimated to have 40 square miles of vacant land. In many cases this vacant land is a discontinuous array of small residential parcels not easily assembled for development. The size and population of San Francisco would fit in the current vacant land in the city of Detroit.
  • Overall population is only half the story…. Density is critical.
  • Job sprawl in the Detroit region is the highest in the country. Today, Detroit is the third largest job center.
  • 2030 Projections show a continued decline if current circumstances go unchanged.
  • International linkages, critical to value proposition:U.S.- Canada trade corridorInternational/NAFTA transport linksAccess to Canadian portsCustoms house, forwarding, and related servicesForeign trade zone facilitiesSOURCE: MSU AND DETROIT REGIONAL CHAMBER OF COMMERCE REPORT TO NEI FOR SE MICHIGAN, MAY 2010; FHWA Freight Analysis Framework (trucking and rail); Bureau of Transportation Statistics, Air Carrier Statistics T-100 database (air); U.S. Army Corps of Engineers, Waterborne Commerce of the United States database (marine).
  • There is a certain degree of irony that, despite the City’s and region’s reputation as the “motor city”, many people do not have access to a vehicle and are reliant on public transportation to access jobs and daily services. Those households that do not have a vehicle tend to be concentrated in the inner portions of the city. This happens to be an area with a greater density of DDOT bus stops, but it also tends to be an area facing several other challenges, including an extremely high vacancy rate.
  • Revenues are achieved via a combination of user charges and standard charges, sometimes placing an additional burden on those wishing to set up a new home – with the possibility of thereby reducing municipal property tax incomesWith prices capped –reinvestment will fall off rapidly accelerating decline in effective infrastructure capacityGiven current regulatory and legal revenue raising structure, sales and charges are insufficient to meet needs ($1.5 billion transport investment shortfall1)Revenues are fallingGiven current regulatory and legal revenue raising structure, sales and charges are insufficient to meet needs
  • Detroit’s level of educational attainment continues to be one of City’s largest challenges. The Citizens Research Council explains:Through analysis completed by Excellent Schools Detroit, the performance for each school in the city is assessed against state and city testing standards to yield a “report card” for 5th, 8th and 12th grades. To ensure these cover the breadth of educational opportunities present in the city, the assessment includes: Public schools Charter schools Private schools Public schools that are now closedThe preponderance of statistical information illustrates a struggling educational system.
  • Detroit’s high concentrations of poor health conditions correlate with areas of poverty and areas of older population. These areas demand an increased level of service. This requisite level of service is challenged by tremendous cost issues.
  • Overall population is only half the story…. Density is critical.
  • While the number of Homicides has decreased to its lowest level since 1967. The homicide rate (per 100,000 residents) is double what it was in 1967.The Number of Homicides has fallen 26% since 2006.
  • Collective InvestmentNeighborhood typologies, infrastructure data and economic recovery analyses and findings should result in a shared and collaborative approach to investment in Detroit.While the stabilization, foundation, and city initiative investment target areas are generated based on analysis specific to their mission, the Detroit Works Project needs to propose a collective informational resource for targeting future investment.
  • Detroit Works Project - Why Change

    1. 1.
    2. 2. We have an opportunity to reinvent Detroit like never before… Local, regional and state leaders are stepping up, working with us and showing their support for real change in this city… Now is the time for Detroit to recapture the spirit of ingenuity and creativity that made our city great.”<br />State of the City Address<br />Mayor Dave Bing<br />March 23, 2010<br />
    3. 3. Phase 3<br />“Moving Detroit Forward”: Preferred Alternative and Draft Framework Plan<br />Phase 4<br />Final Strategic Framework Plan <br />Phase 2<br />“Making Tough Choices”: AlternativeFuture Scenarios and Early Action Plan<br />Phase 1<br />Listening, Learning, and Analysis<br />July– Dec 2010<br />May – Aug 2011<br />Sept – Dec 2011<br />Jan – April 2011<br /><ul><li>Completion of Draft Policy Audits
    4. 4. 5 community forums
    5. 5. Completion of Neighborhood Analysis
    6. 6. Confirmed initial list of early actions
    7. 7. Recommendations on potential adoption mechanism (for final framework report)
    8. 8. 30+ community forums
    9. 9. Opportunity for public review and comment on Draft Framework Plan
    10. 10. 5 community forums
    11. 11. Adopted final framework plan
    12. 12. Draft alternative future scenarios
    13. 13. 6 community forums
    14. 14. Decision on “preferred alternative”
    15. 15. Draft framework plan</li></li></ul><li>Phase 1 Update <br />Touched approximately 5000 Detroiters through Phase meetings<br />Responded to over 500 service requests<br />Top three things we heard from the community during Phase I:<br />Improve essential city services NOW <br /><ul><li>Public Safety: Response time & residency
    16. 16. Blight Elimination: Illegal dumping & demolition
    17. 17. Vacant land: Impact on neighborhoods & acquisition process</li></ul>Transportation improvements needed:<br />- Regional light rail and bicycle safety & accessibility<br />Use of vacant land: <br /><ul><li>Greening & sustainability initiatives and economic development</li></li></ul><li>Near-Term Priorities Informed by Phase 1 Feedback<br />Take action while planning<br />Public Safety<br /> - Internal, operational changes <br /> - Homes for Public Safety Officers<br />Blight Elimination<br /> - Bing 3,000 first year<br /> - Bing 10,000 first term<br />Vacant Land<br /> - Acquisition/assembly of key vacant parcels<br /> - Enhance opportunities for residents/community based organizations to acquire property<br />
    18. 18. WHY CHANGE?<br />
    19. 19. WHO WILL LIVE HERE?<br />
    20. 20. Who will live here?<br />Population Loss<br />-57%<br />How We Compare… <br />Pittsburgh: -51%<br />Cleveland: -48%<br />Chicago: -20%<br />Minneapolis: -27% <br />Milwaukee: -6%<br />Detroit population change of over 1,000,000 in the last 50 years. <br />
    21. 21. Who will live here?<br />Percent Population Change 2000 - 2008<br />85%<br />of the city’s land area has experienced continued population decline over the last decade.<br />SOURCE: CLARITAS 2008<br />
    22. 22. Who will live here?<br />Direct Impacts of Population Change <br />2010<br />1950<br />Willis Street<br />Willis Street<br />Moran Street<br />McDougall Street<br />McDougall Street<br />Moran Street<br />Leland Street<br />Leland Street<br />GOOGLE EARTH IMAGE<br />GOOGLE EARTH IMAGE<br />Historic Density <br />185 Homes <br />540 People <br />23 Persons per acre<br />$151,673 tax revenue<br />Current Density <br />40 Homes<br />116 People<br />5 Persons per acre<br />$32,794 tax revenue<br />
    23. 23. Who will live here?<br />OPPORTUNITY:<br />Reverse population loss and attract new residents to the city.<br />
    24. 24. Who will live here?<br />Additional Population Reduces Individual Tax Burden <br />$173m<br />125,017<br />residential <br />parcels are <br />unoccupied.<br />The existing property vacancy accounts for 173 Million in lost property tax revenue. <br />SOURCE: DETROIT RESIDENTIAL PARCEL SURVEY, 2009<br />
    25. 25. Who will live here?<br />Youthful Potential<br />28%<br />of Detroit’s population is less than 18 years old, and represents the future of the city. <br />SUMMER IN THE CITY IMAGE<br />YOUNG DETROIT BUILDERS IMAGE<br />SOURCE: AMERICAN COMMUNITY SURVEY, 2009<br />HAAIMAGE<br />CHAZZ MILLER IMAGE<br />
    26. 26. Who will live here?<br />Senior Citizens as Resource<br />2x<br />By 2035, the senior population (ages 65+) <br />will double.<br />SOURCE: SEMCOG, 2009<br />ALL IMAGES COURTESY OF GETTY IMAGES<br />
    27. 27. WHERE WILL PEOPLE LIVE ?<br />
    28. 28. Where will people live? <br />Vacant Land Area is Overwhelming<br />40<br />VACANT SQUARE MILES<br />This is almost equivalent to the total land area of San Francisco (47 square miles).<br />SOURCE: UDM<br />SOURCE: P&DD 2000<br />
    29. 29. Where will people live? <br />Increasingly Limited Housing Options<br />63%<br />of existing housing units are single family.<br />SOURCE: CLARITAS 2008<br />
    30. 30. Where will people live? <br />OPPORTUNITY:<br />Invest in existing strong housing stock and create a diversity of housing options.<br />Capitalize on existing housing demand and areas of density to provide a diverse array of housing options.<br />
    31. 31. Where will people live? <br />Increasing Demand and New Development<br />HAA IMAGE<br />HAA IMAGE<br />Broderick Tower <br />$50m Renovation to provide 127 new units<br />Lofts at The Garfield<br />90% of 56 units occupied<br />
    32. 32. Where will people live? <br />Diverse, Thriving Neighborhoods Providing Safe, Healthy Environments for All<br />HAA IMAGE<br />SWEET JUNIPER IMAGE<br />HAA IMAGE<br />HAA IMAGE<br />
    33. 33. WHERE WILL PEOPLE WORK?<br />
    34. 34. Where will people work? <br />Historically High Unemployment Rate<br />As of August 2010<br />24.3%<br />14.4%<br />9.5%<br />SOURCE: BUREAU OF LABOR STATISTICS, ICIC ANALYSIS<br />
    35. 35. Where will people work? <br />Sprawling Regional Employment Centers<br />38%<br />Only 38% of Detroiters work in the city. <br />SOURCE: DETROIT COLLABORATIVE DESIGN CENTER, 2010; GLAESER, 2001; US CENSUS 2000<br />
    36. 36. Where will people work? <br />Regional Employment Projections (2010 – 2030)<br />11%<br />% GROWTH<br />TOTAL JOBS<br /> 1990<br /> 93,500<br /> 95,500<br /> 35,000<br /> 87,500<br /> 13,800<br /> 60,000<br /> 48,000 <br /> 45,000<br /> 36,800<br />TOTAL JOBS<br /> 2000<br /> 80,000<br /> 101,200<br /> 62,000<br /> 76,000<br /> 20,000<br /> 66,800<br />46,000<br />40,000<br />32,000<br />DETROIT CBD<br />BIRMINGHAMPONTIAC<br />STERLING<br />SOUTHFIELD CITY<br />DEARBORN CBD<br />ANN ARBOR<br />LIVONIA<br />BRIGHTON<br />-15.0<br /> +5.0<br />+77.0<br />-13.0<br />+44.0<br />+12.0<br /> -4.0<br />-13.0<br />-15.0 <br />By 2030, Detroit is projected to have only 11% of the region’s jobs, compared to 14% currently.<br />SOURCE: SEMCOG 2030 REGIONAL DEVELOPMENT FORECAST (RDF) COMMUNITY DETAIL REPORT<br />
    37. 37. Where will people work? <br />OPPORTUNITY:<br />Reposition the city of Detroit as a major job center and put Detroiters back to work.<br />Leverage existing market strengths, available land, and our entrepreneurial spirit to provide job opportunities for all Detroiters.<br />
    38. 38. Where will people work? <br />Freight & Logistics: “Global Detroit” – Gateway to the Midwest and Beyond<br />1<br />#<br />Detroit is the largest <br />US-Canadian Port <br />for Value of Freight.<br />SOURCE: SEMCOG, 2010 & US DEPARTMENT OF TRANSPORTATION<br />
    39. 39. Where will people work? <br />Opportunities to Reuse Publicly Owned Land <br />42,300<br />Publicly owned vacant parcels. <br />SOURCE: INTERFACE STUDIO INDUSTRIAL LAND SURVEY, 2010 <br />
    40. 40. HOW WILL PEOPLE MOVE?<br />
    41. 41. How will people move? <br />Detroit’s Transportation Network is Dominated by the Car<br />8%<br />Drive alone<br />69%<br />X<br />Only 8% of Detroit residents use public transit<br />Carpool<br />/ Vanpool<br />Public <br />Transportation<br />Other <br />Means<br />Work<br />at home<br />Walk<br />Detroit Transportation Modes Breakdown (Ages 16+)<br />For those traveling to work<br />SOURCE: SEMCOG COMMUNITY PROFILES<br />
    42. 42. How will people move? <br />Access to Private Vehicles<br />33%<br />of households do not have access to a private vehicle.<br />SOURCE: CLARITAS 2008, P&DD 2009<br />
    43. 43. How will people move? <br />Public Transit Fiscal Position (DDOT)<br />$140m<br />yearly average DDOT revenue shortfall over the last 8 years.<br />Revenues from sales and charges has remained largely constant despite and increase in ridership.<br />SOURCE: 1. MCKINSEY, DDOT DIAGNOSTICS, AUGUST 2010. 2. DDOT MEETING, OCTOBER 2010, 3. CITY OF DETROIT BUDGETS<br />
    44. 44. How will people move? <br />OPPORTUNITY:<br />Develop attractive, reliable and equitable transportation options for all Detroiters.<br />
    45. 45. How will people move? <br />Functional, Well-planned Public Transportation Systems<br />$425m<br />committed to <br />Woodward Light Rail.<br />M1 WOODWARD LIGHT RAIL / RENDERING COURTESY HOK<br />
    46. 46. How will people move? <br />Walkable Communities for All Residents<br />400<br />INDYCULTURALTRAIL.ORG IMAGE<br />planned miles for a new bikeway system.<br />NEIGHBORHOODS.ORG IMAGE<br />CITY OF DETROIT NON-MOTORIZED URBAN <br />TRANSPORTATION MASTER PLAN, 2006<br />HAA IMAGE<br />HAA IMAGE<br />HAA IMAGE<br />
    48. 48. What services will people need? <br />Public Services Cost Comparison with Other Cities<br />FY11 Spend per capita<br />$ thousands per capita<br />$9m<br />DETROIT<br />Pittsburgh<br />St Louis<br />Cleveland<br />Lansing<br />Detroit will spend over $9 million per square mile to provide city services in 2011. <br />San Jose<br />Houston<br />San Diego<br />Austin<br />Dallas<br />Phoenix<br />Flint<br />9.0<br />8.0<br />7.0<br />6.0<br />5.0<br />4.0<br />3.0<br />2.0<br />1.0<br />0<br />SOURCE: CITY BUDGETS<br />FY11 Spend per square mile<br />$ millions per square mile<br />
    49. 49. What services will people need? <br />Infrastructure Revenues<br />$1.5b<br />investment shortfall<br />POPULATION<br />INFRASTRUCTURE REINVESTMENT<br />REVENUE<br />SOURCE: SEMCOG, 2010<br />
    50. 50. What services will people need? <br />Educational Struggle<br />10%<br />of all Detroit schools (K-12) perform above the state average.<br />SOURCE: EXCELLENT SCHOOLS DETROIT, 2010 SCHOOL REPORT CARD<br />
    51. 51. What services will people need? <br />Health and Wellness Challenges<br />48%<br />X<br />Death from heart disease in Detroit is 48% higher than the national average.<br />SOURCE: 2007 MICHIGAN RESIDENT DEATH FILE, DIVISION OF VITAL RECORDS & HEALTH STATISTICS, MICHIGAN DEPARTMENT OF COMMUNITY HEALTH, 3.1<br />
    52. 52. What services will people need? <br />OPPORTUNITY:<br />Enhance quality of service delivery and provide access to amenities.<br />By capitalizing on current City initiatives, and more efficiently delivering vital services, we can shape a better quality of life for all Detroiters.<br />
    53. 53. What services will people need? <br />Efficient Neighborhood Densities<br />Build on areas of existing density to provide <br />MINNEAPOLIS<br />2.8<br />more efficient delivery of services<br />4.7<br />PORTLAND<br />LOS ANGELES<br />16<br />8.7<br />Infrastructure / Service <br />Efficiency Threshold<br />9<br />DETROIT<br />25<br />CHICAGO<br />RESIDENTS PER ACRE<br />81<br />MANHATTAN<br />
    54. 54. What services will people need? <br />Reducing Crime Rates<br />15%<br />decrease in the number of homicides over the last year. <br />26 %<br />decrease since 2006.<br />SOURCE: KRISTI TANNER-WHITE AND MARTHA THIERRY / DETROIT FREE PRESS<br />
    55. 55. What services will people need? <br />Greater Access to Healthy Foods and Exercise<br />15<br />In 2010, the Green Grocer Project aimed to help 15 Detroit grocery stores with financing or <br />technical issues. <br />AECOM IMAGE<br />SEED WAYNE IMAGE<br />DEGC IMAGE<br />URBANFARMING.ORG IMAGE<br />CITY OF DETROIT NON-MOTORIZED URBAN TRANSPORTATION MASTER PLAN, 2006<br />
    56. 56. HOW WILL WE INVEST?<br />
    57. 57. How will we invest?<br />Investment Spread Across City<br />$89 M<br />in Neighborhood Stabilization Program investment .<br />SOURCE: DETROIT, NSP1, NSP 2, NDNI, P&DD <br />
    58. 58. How will we invest?<br />Investment Spread Across City<br />121<br />X<br />SQUARE MILES<br />of the City is a target area for investment.<br />SOURCE: DETROIT, NSP1, NSP 2, NDNI, P&DD <br />
    59. 59. How will we invest?<br />OPPORTUNITY:<br />Achieve greater impact from public, private and philanthropic investments.<br />
    60. 60. How will we invest?<br />Confronting Immediate Challenges<br />10,000<br />vacant homes to be torn down in Mayor Bing’s first term. <br />BUCKSHOTJONES IMAGE, FLICKR (CREATIVE COMMONS)<br />BUCKSHOTJONES IMAGE, FLICKR (CREATIVE COMMONS)<br />
    61. 61. How will we invest?<br />Addressing Unique Needs of Each Type of Neighborhood<br />4<br />1<br />2<br />1<br />3<br />2<br />ALL IMAGES COURTESY OF HAA<br />3<br />4<br />
    62. 62. How will we invest?<br />Creating an Inspirational, Vibrant City<br />MOTOR CITY MAKEOVER IMAGE<br />SUMMER IN THE CITY IMAGE<br />DETROIT DIESEL CORPORATION IMAGE<br />RETINA IMAGE, GIZMAG.COM<br />GIRL IN THE D IMAGE<br />
    63. 63. NEXT STEPS<br />
    64. 64. SUMMARY NEXT STEPS<br />Complete current series of meetings<br />Take feedback to inform the next round of meetings and work:<br /><ul><li>Topic meetings
    65. 65. Geographic meetings
    66. 66. Neighborhood analysis
    67. 67. Development of planning scenarios</li></li></ul><li>ONLINE SURVEY<br />Please share your thoughts about Detroit’s future! Click on the link below (or paste it into your browser) to take an online survey:<br /><br />